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The University of Montenegro was founded on 29 April 1974. In that year, three faculties: Faculty of Economics, of Engineering and the Faculty of Law from Titograd, two colleges: Teaching College from Nikšić and Maritime Studies College from Kotor and three independent scientific institutes: for History, for Agriculture and for Biological and Medical Research from Titograd, signed the Agreement on Association into the University of Titograd. A year after it was founded, the institution changed its name to Veljko Vlahović University in honour of the prominent communist activist and noted World War II participant from Montenegro who died that year. In 1992, the university was given its current name - University of Montenegro.

During the thirty years of its existence, the University has developed in accordance with the possibilities and requirements of time.

The University of Montenegro is organized like most European universities. It comprises faculties, institutes and colleges, as well as logistic centers. The University has unique academic, business and development objectives. The Managing Board governs the university and the Rector manages it. The supreme academic body is the University Senate. Deans are heads of faculties and directors are heads of institutes. At faculties i.e. at institutes, the highest academic bodies are councils for teaching-scientific issues, i.e. for teaching-artistic issues. The highest student body is the Student Parliament. Representatives of students are elected in all bodies of the University and of the faculties.

The University Library constitutes an equal member of the University. There are Center of Information Technology, Human Rights Centre, Centre for International Studies, Centre for Quality at the University as well.

The seat of the University is in Podgorica, the capital city of Montenegro, with a population of around 150,000. Most faculties of the University of Montenegro are located in Podgorica, while some faculties were opened in Budva and Bijelo Polje in 2005.